Cloudflare (NET 3.84%) stock is seeing another day of impressive gains in Monday's trading. The cybersecurity and web services company's share price was up 3.8% as of 2:45 p.m. ET. Meanwhile, the S&P 500 index was up 0.7%, and the Nasdaq Composite index was up 1.1%. Cloudflare had been up as much as 5.9% earlier in the session.Following explosive gains in Friday's trading, Cloudflare stock is seeing continued bullish momentum thanks to coverage from analysts. Before the market opened this morning, Mizuho an ...

After the closing bell Thursday, Cloudflare (NET 17.76%) reported strong fourth-quarter earnings results that carried its share price above $150 for the first time since 2021. But Morgan Stanley analyst Hamza Fodderwala has outlined a bull-case scenario for the stock to advance by another 16% to $175 per share by year's end, and he may revise his forecast higher in light of its strong performance in the recent quarter."We believe 2025 could be a breakout year for Cloudflare," Fodderwala wrote in a recent no ...

Cloudflare (NET 19.69%) stock is soaring in Friday's trading. The company's share price was up 19.5% as of 2:40 p.m. ET amid the backdrop of a 0.9% decline for the S&P 500 index and a 1.4% pullback for the Nasdaq Composite.Cloudflare published its fourth-quarter earnings after the market closed yesterday and reported sales and earnings performance that beat Wall Street's expectations. Even better, the company laid out very strong guidance for the current quarter and fiscal year.Q4 beats contribute to Cloudf ...

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to start February, consider joining Out Fox The Street .The market is so hot that Cloudflare, Inc. (NYSE: NET ) guided down Q1 estimates, yet the stock continues to soar. The connectivity cloud company is positioned in the middle of the surging demand for AI and networkMark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential m ...

Wall Street analysts rerated Cloudflare, Inc NET after the company released its fourth-quarterly print Thursday.Cloudflare reported EPS of 19 cents, which beat the analyst estimate of 18 cents. Quarterly revenue was $459.9 million (up from $362.47 million a year ago), which beat the consensus estimate of $452.09 million.Cloudflare expects first-quarter adjusted EPS of 16 cents and revenue of $468 million-$469 million.Also Read: MSG Entertainment Q2 Earnings: Strong Holiday Ticket Sales, Beats Revenue Estima ...

Core Insights - Cloudflare (NET) reported a non-GAAP earnings of 19 cents per share for Q4 2024, exceeding the Zacks Consensus Estimate by 5.6% and reflecting a year-over-year increase of 26.7% [1][2] - The company's revenues for Q4 2024 reached $459.9 million, marking a 27% year-over-year growth and surpassing the consensus estimate by 1.8% [2][4] Revenue Performance - The revenue growth was driven by strong onboarding of large enterprises, significant progress in the public sector, and a heightened focus on security and a zero-trust approach by customers [3] - Revenue from Channel Partners constituted 22% of total revenues, amounting to $101.4 million, which is a 63.8% increase year-over-year. Direct Customers accounted for 78% of total revenues, generating $358.6 million, up 19.3% year-over-year [5] Customer Metrics - Cloudflare had 237,714 paying customers in Q4 2024, reflecting a 25.3% year-over-year increase. The company added 232 new customers contributing over $100,000 in annual revenues, bringing the total to 3,497 [6] Profitability - Non-GAAP gross profit for Q4 2024 increased by 24.7% year-over-year to $356.8 million, although the non-GAAP gross margin contracted by 130 basis points to 77.6% [6] - Non-GAAP operating income rose to $67.2 million from $39.8 million in the previous year, with the non-GAAP operating margin expanding by 360 basis points to 14.6% [7] Financial Position - As of December 31, 2024, Cloudflare's cash, cash equivalents, and available-for-sale securities totaled $1.86 billion, up from $1.82 billion as of September 30, 2024. The company generated an operating cash flow of $127.3 million and a free cash flow of $47.8 million [8] Guidance - For Q1 2025, Cloudflare expects revenues in the range of $468-$469 million, with a consensus estimate of $471.8 million, indicating a year-over-year rise of 24.6%. Non-GAAP earnings are anticipated to be 16 cents per share [9] - For FY 2025, the company projects revenues between $2.09 billion and $2.094 billion, with a consensus estimate of $2.07 billion, suggesting a year-over-year increase of 24.8% [10]

Core Insights - Cloudflare's fourth-quarter financial report indicates a strong upward trajectory in revenue and adjusted net income, despite a slight decline in gross margin [3][4]. Financial Performance - Total revenue for Q4 2023 was $362.5 million, increasing to $459.9 million in Q4 2024, representing a growth of 27% and beating expectations [2]. - Adjusted earnings per share rose from $0.15 in Q4 2023 to $0.19 in Q4 2024, also a 27% increase and exceeding expectations [2]. - Free cash flow decreased from $50.7 million in Q4 2023 to $47.8 million in Q4 2024, a decline of 6% [2]. - Adjusted gross margin slightly decreased from 78.9% to 77.6%, a drop of 1.3 percentage points [2]. Customer Growth - The company added 55 new clients contributing $1 million or more in revenue during 2024, with over half of these additions occurring in the last quarter [4]. Market Reaction - Following the financial report, Cloudflare's shares rose by 6% in the first hour of post-market trading, reflecting investor satisfaction with the exceeded sales and earnings figures [5]. Future Guidance - For 2025, Cloudflare projects revenue between $2.09 billion and $2.094 billion, indicating a growth rate of approximately 25% [6]. - Adjusted earnings per share are expected to be between $0.79 and $0.80, translating to modest growth of 5% to 7% [6]. Investment in Innovation - The company anticipates significant expenditures to maintain technological innovation, as indicated by the decline in free cash flow during Q4 2024 [7].

Financial Data and Key Metrics Changes - The company achieved revenue of $459.9 million in Q4 2024, up 27% year over year [9][44]. - Gross margin was 77.6%, remaining above the long-term target range of 75% to 77% [11][48]. - Operating income was $67.2 million, representing a 69% increase year over year, with an operating margin of 14.6% [52]. - Free cash flow for the quarter was $47.8 million, or 10% of revenue, compared to $50.7 million or 14% of revenue in the same period last year [54]. Business Line Data and Key Metrics Changes - The company added a record number of large customers, totaling 3,497, which is a 27% increase year over year [10][45]. - Revenue contribution from large customers grew to 69% of total revenue, up from 66% in the same quarter last year [10][46]. - The dollar-based net retention rate increased to 111%, up one percentage point quarter over quarter [10][47]. Market Data and Key Metrics Changes - U.S. revenue represented 58% of total revenue, increasing 27% year over year [44]. - EMEA accounted for 28% of revenue, also up 27% year over year, while APAC represented 14% of revenue, increasing 39% year over year [44]. Company Strategy and Development Direction - The company is focused on improving go-to-market execution and has seen a fifth consecutive quarter of double-digit year-over-year increases in sales productivity [16][43]. - The strategy includes aggressive hiring in the sales organization, with nearly 80% of new hires in the enterprise segment [18]. - The company aims to leverage its strengths in security, AI, modernization, and efficiency to capture demand in 2025 [12][15]. Management's Comments on Operating Environment and Future Outlook - Management noted that customers have been disciplined with budgets but are beginning to show signs of returning confidence, particularly in the U.S. [12]. - The company expects to see a meaningful acceleration in sales capacity and productivity in 2025, with 80% of the full-year plan assigned to account executives already in place [20][58]. - For Q1 2025, the company expects revenue in the range of $468 million to $469 million, representing a 24% year-over-year increase [58]. Other Important Information - The company ended Q4 2024 with $1.86 billion in cash, cash equivalents, and available-for-sale securities [54]. - Remaining performance obligations (RPO) increased to $1.687 billion, representing a 36% year-over-year increase [55]. Q&A Session Summary Question: Inquiry about the efficiency of inference workloads moving to the edge - Management discussed the optimizations from DeepSeq and the potential for AI models to commodify, which aligns with the company's strengths in efficiency [66][70]. Question: Focus on product innovation and upcoming inflection points - Management expressed excitement about proving world-class go-to-market capabilities and highlighted various innovative applications being built on the Cloudflare platform [80][82]. Question: Impact of pool of funds deals in Q4 and 2025 - Management indicated that pool of funds activity in Q4 was comparable to the prior quarter, and they are optimistic about its impact on revenue recognition in 2025 [87][90]. Question: Update on FedRAMP high and government business - Management emphasized the importance of federal business and the strategy to comply with FedRAMP high requirements without fragmenting the network [96][100]. Question: Security performance and standout product categories - Management noted that large customers are increasingly adopting the entire Cloudflare platform rather than individual products, which is driving growth [105][107]. Question: Changes in compensation and incentives for sales teams - Management discussed the adjustments in compensation structures to align with pool of funds deals and ensure deep customer relationships [117][120].

Investor Presentation As of December 31, 2024 © 2024 Cloudflare, Inc. Safe Harbor This presentation has been prepared by Cloudflare, Inc. ("Cloudflareˮ) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise, or representation by the presenter or Cloudflare or any officer, director, employee, agent, or advisor of Cloudflare. This presentation does not purport to be all-inclusive or to contain all of the i ...

Cloudflare (NET) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.56%. A quarter ago, it was expected that this web security and content delivery company would post earnings of $0.18 per share when it actually produced earnings of $0.20, delivering a surprise of 11.11%.Over the last ...